The defendants brought a motion under Rule 56.01(1)(d) seeking an order that the plaintiff, a not-for-profit family health team, post $500,000 as security for costs.
The plaintiff opposed the motion on the basis of impecuniosity, having ceased operations after its sole source of funding was terminated.
The court found that the plaintiff was impecunious and that its claim for misappropriation of funds was not devoid of merit, relying on two forensic audit reports.
The court concluded it would be unjust to order security for costs and dismissed the motion, awarding costs to the plaintiff.
